If there were a market for pollution rights established by a public agency that determined the amount of pollution that the atmosphere or a body of water can safely absorb, and the agency sold these rights to polluters, we could expect that:
A. the price of these pollution rights would increase over time as the economy grows.
B. there would be a shortage of pollution rights.
C. there would be a black market for pollution rights.
D. there would be a surplus of pollution rights.
Answer: A
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A document that promises to pay specified sums of money on specified dates and is a debt to the issuer is called
A) a bond. B) depreciation. C) a stock. D) net investment. E) gross investment.
Assuming capital and labor are substitutes, an improvement in technology that affects only the productivity of capital would cause a firm to employ more capital but leave the amount of labor employed unchanged
Indicate whether the statement is true or false
In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts up and to the right, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, it will
A) shift the LR curve up. B) not shift the LR curve. C) shift the LR curve down. D) shift the IS curve up and to the right.
Good X is an inferior good but not a Giffen good. When the price of X increases, the consumer will consume
a. more X. b. the same amount of X. c. less X. d. more or less X depending on the size of the income effect relative to the size of the substitution effect.